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Mortgage application growth led by ACT

The Australian Capital Territory (ACT) led the country in terms of mortgage application growth in the final quarter of 2016. 

This is according to the latest data from the Veda consumer credit demand index, which specified that ACT mortgage applications grew by 14.9 per cent over the course of the three-month period. Canberra in particular was shown as leading Australia for mortgage applications.

In addition to these property trends, growth of 11.3 per cent was recorded in terms of bids for personal finance. Angus Luffman, general manager of consumer risk at Veda, said this was led by car loans.

According to Mr Luffman, ACT mortgage applications had been growing for the past six quarters - and he noted that this is the only jurisdiction where the trend has been this consistent. 

Indeed, December quarter growth in Canberra was more than double the national average of 6.6 per cent. 

Areas such as the Northern Territory and Western Australia (WA) had a setback with backwards turns for mortgage applications. 

However, the Veda report does not specify the actual number of applications or how many of these were converted into loans.

Mr Huffman explained that mortgage applications in the Veda data have historically led movements in house prices by approximately six to nine months. 

"In the ACT for mortgages it's been a rising trend for the last nine months and peaked in December," he remarked.

"There was a nationwide strengthening in Australia except for WA and the Northern Territory. The ACT is the only state to have been in positive territory for the past six quarters."

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